Winsted City Council Minutes

Mayor called the meeting to order, and then called for the Public Hearing
and EDA Public Hearing for Modification of the Housing Development, Tax
Increment District #4.

The Economic Development Authority (EDA) was included as part of the
Public Hearing, and called to report to the City Council. Lenz motioned
to appoint the Mayor as Chairman of the EDA and City Clerk as Secretary
of the EDA, Kegler seconded, unanimously carried.

Shelly Eldrich, of Ehler's and Associates was present, along with three
other persons. No written comments had been received. Ms. Eldrich reviewed
with the persons present, the basic process of the TIF, along with its history,
goals that had been a part of the district when it began, and how the process
got to the present stage. The City has submitted substantial and detailed
reports to the State that must tie into the audit report.

The EDA has determined that the modification is still in compliance with
the original goals, and does fall within the development plans of the City.
After discussion and questions, Quast motioned to adopt Resolution No. 288-07-21-98,
Adopting the Modification to the Residential Development Plan for the Residential
Development District, and adopting the Modification to the Tax Increment
Financing Plan for Tax Increment Financing District No. 4, Kegler seconded,
unanimously carried.

No other business, Stotko motioned to adjourn the EDA Public Hearing,
Quast seconded, unanimously carried.

Mayor then called for the Public Hearing of the City Council, for modifying
the Financing for the Tax Increment District No. 4. Eldrich reviewed the
plan and finances that have occurred since inception in 1983. The Council
found the modifications fall within the original TIF District No. 4, and
within the Development Plan.

The development would not have occurred without the use of tax increment
financing. The Housing Development District enhances the economic base of
the City. It was noted that additional revenues were the result of lot sales
within the district.

After discussion, Kegler motioned to adopt Resolution No. 289-07-21-98
Adopting the Modification to the Residential Development Plan for the Residential
Development District, and adopting the Modification to the Tax Increment
Financing Plan for Tax Increment Financing District No. 4, Ollig seconded,
unanimously carried.

No other action, Lenz motioned to close the Public Hearing and continue
on with the regular City Council meeting, Kegler seconded, unanimously carried.

Kegler motioned to accept the minutes of July 7 meeting as written, Ollig
seconded, unanimously carried.

Attorney Eggert reviewed with the Council, the Dairy Farmers of America
(former Mid America) easement requested by Dairy Farmers. The easement consists
of use of city property on the east side of the existing Maintenance Building,
for entrance to Dairy Farmers Facility during its normal operations. Easement
contained a 10 year lease, and right of termination with 90 day notice by
either party.

Attorney Eggert discussed the annexation of several parcels of land.
It was agreed to allow Eugene Ochu until Nov. 1,1998 to have the old vehicles,
machinery, equipment and other metal materials removed. Upon discussion,
Quast motioned to adopt Resolution No. 290-07-21-98, accepting petition
for annexation of property owned by Eugene Ochu, Northern States Power,
and Winsted Township (portion of Zion and Main Ave. W.), empowering the
Mayor and Clerk to execute, Kegler seconded, unanimously carried.

Discussion again centered on disappointment of McLeod County with the
result of County Road # 1. A letter sent by the Chief of Police to McLeod
County Highway Department Engineer, Rick Kjonnas regarding the existing
marking of turn lanes, inconsistency and traffic enforcement problems with
the way the road was marked was read. Many of the complaints were reiterated
by Council members.

Fire Hall progress was reported. Due to some marginal soils, some excavating
had to be done, and the footings were made wider than required under the
specifications, which resulted in corrective recommendations of the soils
reports to be waived. The Mayor signed this statement for TDJ Contracting.

The City Clerk was instructed to explore options for a City Hall, should
the need occur.

Lenz motioned to pay the following bills:

Check Nos. 8301-8357 $39,807.41

Payroll Nos. 2703-2717 $8,955.70

Fire Dept. 3002-3007 $40,469.21

Ollig seconded, unanimously carried.

Maintenance and Administrative Supervisors will meet with Personnel Committee
for review of several employees.

Lenz and Ollig reported on action by the Planning Commission July 15
meeting, which was a Comprehensive Land Use Plan workshop. The City will
be participating in a survey of heads of households within the City in the
near future, at a cost of approximately $450.

Lenz requested permission to treat Winsted Lake with copper sulfate,
as permitted by the DNR.

Lenz motioned to execute and enter into a Cooperative Agreement with
the Minn. Historical Society in sponsoring a consulting team to study the
reuse of the old City Hall, Quast seconded, unanimously carried.

Lenz motioned to approve the Amendment to the Operation and Maintenance
Agreement with Peopleservice, Inc., with a monthly payment of $12,300, Ollig
seconded, unanimously carried.

The City will request Matt Jonson of Mid Minn. to attend a hearing at
Wright County regarding the Land Use Plan for Victor Township.

After review by the City Attorney, Quast motioned to accept a contract
with Watertower Paint and Repair Co., to install a handrail and a dump valve
on the outside of the water tower, in the amount of $8,140, with work to
possibly be done yet this fall; and to clean, prime and paint the exterior
of the water towner in 1999, in the amount of $23,862. Kegler seconded the
motion.